China’s computer industry sales grew only 13.9% last year to the equivalent of $17.8bn, a big drop from the 41.3% growth seen in 1997. The average growth rate of the IT industry in China has been more than 40% since 1994. The PC market grew 16.6%, with domestic manufacturers managing a 42.8% growth, while foreign makers saw negative growth for the first time, according to official statistics.
In general, Foreign direct investment going to Chinese companies will drop by more than 55% from 1998 to less than $20bn this year, according to senior trade ministry economist Ma Yu. He said this is partially due to continuing problems in neighboring countries which have been the main source of foreign investment in the past, as well as economic recovery in other parts of Asian attracting more investment.
